Using Detrended Synthetic Price Bars Instead of Fixed Oscillator Levels

Summary

This brief indicator note discusses Detrended Synthetic Price, an indicator attributed to John Ehlers. It argues that using fixed levels to interpret the oscillator can be cumbersome because the appropriate levels may need adjustment for each instrument, timeframe, and parameter setting. As an alternative, the author favors a bar-based version that omits signal lines and displays the oscillator as colored bars on the main chart.

The note says the bars version is a reasonable choice and mentions comparisons with oscillator and other bar presentations under different coloring settings. However, the supplied text contains no chart, precise color rules, parameter values, entry or exit conditions, or empirical test. It therefore introduces a display and interpretation preference rather than a complete trading method. Readers would need additional documentation to reproduce the indicator, determine what each bar color means, or assess whether the presentation provides useful signals across markets and timeframes.

Key ideas

• Detrended Synthetic Price is attributed to John Ehlers.
• The author considers fixed oscillator levels impractical because settings may vary by instrument and timeframe.
• A bar-based version without signal lines is presented as an alternative display.
• The text provides no trading rules, parameter specifications, or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.